Performance Trust Leads $70 Million Sub-Debt Raise for Louisiana CDFI

NATCHITOCHES PARISH, La., Nov. 6, 2024 -- Grant Bancshares, Inc., the holding company for BOM Bank, has successfully completed a private placement of $70 million in fixed-floating-rate subordinated notes due December 31, 2034. This funding will be utilized for general corporate purposes and potential future strategic opportunities at the CDFI-based bank in Natchitoches Parish, LA. The Mission Driven Bank Fund served as the lead investor in this transaction, furthering its mission to expand financial services in underserved communities.

"The Fund is dedicated to partnering with more mission-driven banks, prioritizing support for these essential players in our national economy," said Paul Welch, portfolio manager of the Fund. The notes will initially bear interest at 8.25% per annum from the original issue date until December 31, 2029, with interest paid quarterly in arrears. From December 31, 2029, through maturity or an earlier redemption date, the interest rate will reset quarterly based on the then-current three-month SOFR plus a spread, with quarterly payments in arrears.

Grant Bancshares, Inc. may redeem the notes, in whole or in part, on any scheduled interest payment date starting five years after the original issue date. They may also be redeemed in whole at any time upon certain specified events. The notes have been structured to qualify as Tier 2 capital under regulatory guidelines.

Performance Trust Capital Partners served as the sole placement agent for this offering. Fenimore Kay Harrison LLP acted as legal counsel to Grant Bancshares, Inc., and Nelson Mullins Riley & Scarborough LLP provided legal counsel to Performance Trust Capital Partners.

"BOM Bank is strategically positioned to harness the benefits of the Mission Driven Bank Fund," said Ken Hale, President, CEO, and Director of BOM Bank. "The proceeds from this capital raise will support our prudent pursuit of market opportunities and strengthen our already robust capital position, allowing us to remain a stalwart in our Louisiana and Texas communities."

About The Mission Driven Bank Fund The Mission Driven Bank Fund seeks to foster a stronger and more inclusive banking system by investing capital and providing technical services to CDFIs and MDIs that target African American, Native American, Asian, Hispanic, and Pacific Islander communities. The Fund's mission is to drive significant growth and financial resiliency in the mission-driven bank sector that translates into demonstrated progress in closing the racial wealth gap. Elizabeth Park Capital Management, a specialist firm investing in U.S. banks, and Calvert Impact, a leading impact investing firm, are members of the Fund's general partner. Strategic Value Bank Partners is a subadvisor, and Performance Trust is a capital advisor and structuring agent for the Fund. For more information, go to www.missiondrivenbankfund.org.

About BOM Bank Founded in 1903, BOM Bank has been serving communities for over 120 years. As a certified Community Development Financial Institution (CDFI), it is one of only 40 CDFIs in Louisiana, representing less than 5% of banks in the U.S. Under the fifth-generation leadership of Ken Hale, who has been President and CEO since 1995, BOM Bank has maintained stability and consistency throughout its history, successfully navigating economic challenges. With a dedicated management team and board, BOM Bank remains a trusted financial partner for communities in Louisiana and Texas. For more information, visit www.bofm.com.

About Performance Trust Performance Trust serves as the MDBF Capital Markets Advisor and Structuring Agent. Performance Trust Capital Partners, LLC is dedicated to enhancing the long-term performance of financial institutions and delivering shareholder value. For more information, visit www.performancetrust.com.

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